Powered by MOMENTUM MEDIA
subscribe to our newsletter

Virgin Money clarifies position on takeover bid

Virgin Money Australia has stated that the outcome of a foreign takeover bid initiated by a former NAB-owned lender will not impact the company.

Earlier this week, it was revealed that UK lender Clydesdale and Yorkshire Banking Group (CYBG) made an offer for Virgin Money UK, valuing the lender at £1.6 billion ($2.9 billion).

In a statement released to Mortgage Business, a spokesperson from Virgin Money Australia said: “Virgin Money Australia is wholly owned by [the] Bank of Queensland. Changes to the ownership or structure of Virgin Money UK will not impact Virgin Money in Australia.”

CYBG has confirmed its interest in acquiring Virgin Money UK and said it believes that the merger would enhance its offering and strengthen its footprint in the UK market.

“CYBG recognises the strength and appeal of the Virgin Money brand. Our proposal would ensure that the Virgin Money brand would play a significant role in the combined group, subject to reaching agreement with Virgin Group Holdings Limited,” CYBG said in a statement. 

Advertisement
Advertisement

The British lender believes that the combination would create the UK’s leading challenger bank offering both personal and SME customers a genuine alternative to the large incumbent banks.

“The combination would provide a powerful full-service banking offer, including leading digital and mobile banking services, for six million personal and business customers, bringing together the complementary strengths of CYBG and Virgin Money.

“With this further strengthened customer franchise and national reach, CYBG believes the combination would deliver increased value for shareholders and wider benefits to other stakeholders.”

CYBG was formally owned by NAB, before the big four bank’s shareholders voted for a demerger in January 2016, in order to “pursue our own focused strategy in our core markets in Australia and New Zealand”.

Virgin Money UK is set to hold a board meeting on Tuesday, 14 May.

PROMOTED CONTENT


[Related: NAB to focus on ‘core markets’ following UK exit]

Virgin Money clarifies position on takeover bid
mortgagebusiness

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

A foreign bank has had its Australian banking licence revoked by APRA after it pulled out of the Australian market. ...

The average number of days properties spend on the realestate.com.au site fell to a record low in May, with records broken in many states a...

The big four bank has hired the former boss of AUSTRAC as the regulator has launched an investigation against NAB for potential anti-money...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.